Sales and Marketing Bulletin Bulletin Number: Date: SM-2006-0158-Global 9 June 2006

Business Communications Manager 4.0 (BCM4.0) Beta Entry Announcement

REVISION HISTORY
Date 9 June 2006 Revision # Original bulletin Summary of Changes This is the original publication

Introduction
Nortel is pleased to announce the commencement of Beta Trials on BCM4.0. Trials are now underway on a Global basis and early feedback has been extremely positive on both the new BCM4.0 capabilities and on the smooth upgrade path this release provides existing BCM 200 / 400 / 1000 customers. Built on the same Linux operating systems as the award winning BCM50 platform, this release provides a robust set of convergence enhancements specifically designed to meet or exceed the requirements of small site SMB and Enterprise customers. Telephony services and applications combine with data options to provide an integrated, scalable, and highly maintainable platform for customers while also giving channel partners new capabilities and values that will enhance their profitability in the small site environment. The BCM4.0 upgrade software is forecast to be GA 21 August 2006, while core BCM200 and BCM400 platforms with 4.0 software are forecast to be GA 28 August 2006.

Product Description/Solution Overview

BCM 4.0 adds exciting new capabilities to the BCM 200 and 400 platforms and drives many of the benefits of the BCM50 across the entire BCM portfolio. With the 4.0 release, BCM continues its leadership as an integrated solutions platform for the small site SMB and Enterprise market place, providing leading edge capabilities that are second to none.

Nortel

Page 1 of 7

BCM 4.0 has been specifically designed to provide our channel partners with a platform that can be profitably sold into small site locations, both standalone and multisite networks. Considerable efforts have been made to improve and streamline this solution to reduce the cost of deployment while also offering distributors with expanded opportunities to generate revenues through complementary network and service offerings. Specific channel partner values include: Integration The BCM 4.0 is a complete in the box converged solution with a host of advanced applications preloaded and ready to go. Voice, FAX, and Unified messaging, Intelligent Contact Center, and CTI are all available through simple key code enablement, and do not require the addition of external servers or hardware. With the ability to enable features remotely, these applications can be activated and programmed on deployed BCMs without having to visit the customers premises. Simplicity BCM 4.0 offers the new Element Manager capability, initially released in BCM50, that substantially reduces the time associated with system programming at installation and in ongoing management. The graphical user interface provides enhanced information capture and entry capability and the streamlined hierarchy will provide much faster screen access. In addition, the BCM 4.0 will reintroduce set based administration for telephony and voice mail programming. This will provide Norstar installers with a familiar management interface, thus easing the introduction of BCM from a training perspective. Note that this will be a secure implementation requiring user login and password to use. Common operational tasks such as performing backups and applying software updates will be easily handled with the optimized tools included within the Element Manager. New Applications BCM 4.0 provides a number of new applications capabilities that further enhance the solutions that can be created to meet individual customer needs. These include Ad-Hoc conferencing capabilities for up to 40 simultaneous users, restructuring the Call Center offerings to provide greater flexibility in solutions development, supporting Unified Messaging in the Citrix environment, and Call Pilot enhancements including expanded greeting tables and CCR trees. Security BCM 4.0 offers significant new security enhancements, many of which were introduced in the BCM50. These include password enhancements, account enhancements, increased interface security and audit logging. VoIP Capabilities To support the rapidly growing deployment of VoIP solutions on BCM, the following capabilities will be included with the 4.0 release: Proactive Voice Quality Monitoring (PVQM), Voice enabled WAN, and expansion of the IP Telephone portfolio to include the IP Conference Phone (2033), 1120E, 1140E, and the IP Key Expansion Module.

Nortel

Page 2 of 7

SIP Capabilities With BCM 4.0, SIP support will be expanded to include SIP interoperability with the CS1000 and MCS5100, support for MCDN features on SIP trunking and T.38 FAX support on SIP trunks.

BCM4.0 Value Proposition

BCM 4.0 provides significant feature and capability enhancements over previous releases, and all these enhancements have been provided as a direct result of market place demands and requests from customers and partners. The following table summarizes the new 4.0 values. For a complete description of each of these capabilities, please see the BCM 4.0 Product Description Summary KTK. Market Trend / Requirement Rapidly shifting demand towards VoIP Solutions BCM 4.0 Deliverable PVQM: Proactive Voice Quality Monitoring allows users to monitor and troubleshoot voice quality issues on the LAN. IP Phone portfolio expansion including the IP Conference Phone (2033), the IP Key Expansion Module, and the 1120E and 1140E telephone sets. Voice enabled Wide Area Networking capabilities that permit enhanced voice quality over low speed Frame Relay and PPP data links BCM 4.0 offers significant new security enhancements, bring the 200 and 400 platforms in line with BCM 50. These include: o Password Enhancements o Account Enhancements o Increased Interface Security o Audit Logging SIP interoperability with CS1000, and MCS5100 Support for MCDN features on SIP trunking T.38 FAX support over SIP trunks Ad-hoc conferencing enhancements allowing up to 40 simultaneous conference participants in multiple conferences

Customers remain focused on potential security issues

Rapid industry convergence on Session Initiated Protocol (SIP) for Interop and innovation

Expanding market demand for converged applications

Nortel

Page 3 of 7

Improved system serviceability and administration

Intelligent Contact Center evolution permitting the development of customer specific solutions based on the agents, skill sets and reporting capabilities required Support of Unified Messaging in Citrix environments Call Pilot enhancement including expanded greeting tables, CCR trees, password and DN enhancements and feature restrictions and security capacities for individual mailboxes BCM 4.0 brings the significant benefits of the BCM50 Element Manager capability to the rest of the BCM portfolio providing a single programming and administration interface to all BCM platforms. In many cases, Element Manager significantly reduces the time required to install, administer and maintain BCM systems in the field.

Target Customers
BCM200 / 400 are targeted at SMB and Enterprise customers with site locations from 20 to over 100 users growth to up to 120+ digital stations or 90 IP stations.

Compatibility/Upgrades
All BCM200/400/1000 platforms can be upgraded to BCM 4.0. Those systems on BCM 3.6 or 3.7 can upgrade directly to 4.0. The upgrade is an automated process, very similar to previous upgrades, and takes from 1.5 to 2 hours depending on size of system. The system is unavailable for call processing during the upgrade process. BCM 3.5 and 3.6 will require upgrades to 3.6 or 3.7, before upgrading to 4.0. For example, a BCM on 3.5 will require a 3.5 to 3.7 upgrade and then a 3.7 to 4.0 upgrade and which will take approximately 3 to 4 hours. A BCM on 2.5 would require an upgrade from 2.5 to 3.0 and then an upgrade from 3.0 to 3.6 and then an upgrade from 3.6 to 4.0 and take approximately 4.5 to 6 hours. If the length of this procedure is a concern, it is suggested that the BCM be upgraded by replacing the existing BCM 2.5 hard drive with a BCM 4.0 hard drive. This will require reprogramming the

Nortel

Page 4 of 7

customer data from scratch, but will often be faster depending on the complexity of the customer configuration. BCM 2.0 systems came with an 8 Gb hard drive and 128 Mb of RAM. These systems could be upgraded to 2.5 but not 3.0 or higher without replacing the hard drive with a 20 Gb hard drive. BCM 2.0 systems will require a BCM 4.0 hard drive upgrade plus a second 128Mb of RAM for a total of 256 Mb RAM.
Software Release BCM 3.7 Hardware Platform BCM200 BCM400 BCM1000 BCM200 BCM400 BCM1000 BCM200 BCM400 BCM1000 BCM200 BCM400 BCM1000 BCM1000 2.5 Recommended Upgrade Path BCM 3.7 -> BCM 4.0 > Software Upgrade preserving customer data BCM 3.6 -> BCM 4.0 > Software Upgrade preserving customer data BCM 3.5 -> BCM 3.7 -> BCM4.0 > Software Upgrade preserving customer data BCM 3.0 -> BCM 3.6 -> BCM 4.0 > Software upgrade preserving customer data: BCM 2.5-> BCM 3.0 -> BCM 3.6 -> BCM 4.0 > Software upgrade preserving customer data Hard drive replacement and re-program customer data > Requires 4.0 upgrade keycode Hard drive replacement and re-program customer data > Requires 4.0 upgrade keycode + (256M RAM) Hard drive replacement and re-program customer data > Requires 4.0 upgrade keycode + 256M RAM

BCM 3.6

BCM 3.5

BCM 3.0

BCM 2.5

BCM1000 2.5 BCM 2.5 Recommended alternative BCM1000 2.0 BCM 2.5 BCM 2.0x BCM1000 2.0

It should be noted that if the system has been previously upgraded using the Ghost process (not officially supported in field) or an early BCM Image Tool (BIT) the Hard Drive partitions may not be consistent with factory parameters and upgrade will not be permitted. If this occurs, it is necessary to back up customer data, and then use current BCM Image Tool to return hard drive to factory parameters of same release, restore customer data, and proceed with the 4.0 upgrade.

Marketing Support
The following links provide detailed information on marketing support and standardization for channel partners. Further details may also be obtained in the Sales and Marketing KTK now posted to the BCM4.0 Channel Readiness site.

Nortel

Page 5 of 7

BCM 4.0 Channel Readiness Site on PIC: https://app12.nortelnetworks.com/cgibin/mynn/home/NN_prodDoc.jsp?curOid=12460&whereClause=23&BkMg=0&prodID=5432 1&progSrcID=31500 BCM 4.0 Product Knowledge Transfer (PKT): https://app12.nortelnetworks.com/cgibin/partnerPage.cgi?filename=/events/pkt/schedule.ht ml Marketing Promotions: (Information In this Section pertains to NA and CALA only) https://app12.nortelnetworks.com/cgibin/partnerPage.cgi?filename=/promotions/new_syste m/smb.html Pricing (in advanced notification section) : (Information In this Section pertains to NA only) https://app12.nortelnetworks.com/cgibin/partnerPage.cgi?curOid=12460&filename=/commu nications/publications/pricelists/gppc.html Global Knowledge Courses: (Information In this Section pertains to NA only) https://get.globalknowledge.com/norteltraining/catalog/ Sales Tools and Collateral: Look to upcoming editions of Partner News Flash for details & Availability Presentations and Training (Information In this Section pertains to NA and CALA only) The following table outlines the many training opportunities that exist to gain a detailed understanding of the BCM4.0 release. Many of these presentations are available for replay. Please see the BCM4.0 Channel Readiness site on the PIC for further details and watch Partner News Flash for details of up coming events. Description
Global Product Knowledge Transfer (PKT) Nortel University (NU): Messaging [Attachables Campaign] Nortel University (NU): Advanced Apps [Attachables Campaign] Nortel University (NU): Mobility Nortel Partner University (NPU) Enterprise E-seminar Qualified Sales Professional (QSP): Messaging [Attachables Campaign] [Attachables Campaign]

Date
June 14th Feb 24th May 1st June 19th Sept 6th Sept 19th March 5th

Nortel

Page 6 of 7

Qualified Sales Professional (QSP): Advanced Apps [Attachables Campaign] Qualified Sales Professional (QSP): Mobility [Attachables Campaign] Qualified Sales Professional (QSP): BCM 4.0 Project Overview Project Renaissance - Lead/Key Partner Sales Training [Business Transformation Office Initiative]

May 15th June 30th June 30th June/July

Product Availability
The BCM4.0 upgrade software is forecast to be GA 21 August 2006, while core BCM200 and BCM400 platforms with 4.0 software is forecast to be GA 28 August 2006. Orders will be accepted starting on 1 July 2006. Nortel expects to meet 48 hrs delivery requirements at GA.

2006 Nortel Networks Limited. All rights reserved. Nortel, the Nortel logo, and the Globemark design are trademarks of Nortel Networks Limited. All other trademarks are the property of their respective owners. The information in this document is subject to change without notice. Nortel reserves the right to make changes, without notice, in equipment design as engineering or manufacturing methods may warrant. The statements, configurations, technical data, and recommendations in this document are believed to be accurate and reliable, but are presented without express or implied warranty. Users must take full responsibility for their applications of any products specified in this document. The information in this document is proprietary to Nortel Networks Limited. To view the most recent version of this bulletin, please visit Nortels Partner Information Center on the web at: http://www.nortel.com/pic.

Nortel

Page 7 of 7